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Klarna Raises $800 Million in Latest Fund Raiser but at a Much Lower Valuation

Klarna raised $800 Million at a valuation of $6.7 billion, which is significantly less than the $45.6 Billion it was valued at in June 2020....
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Klarna raised $800 Million at a valuation of $6.7 billion, which is significantly less than the $45.6 Billion it was valued at in June 2020.

Klarna, a Swedish fintech company that specializes in financial technology, announced Monday that it has raised $800m in common equity, at a $6.7billion post-money valuation.

Existing investors like Sequoia, Silver Lake and Commonwealth Bank of Australia are the backers. Klarna was also the first investment made by Mubadala Investment Company, and Canadian Pension Plan.

Klarna will allow smaller shareholders to participate in the ongoing process over the next few weeks, pro-rata, after this round.

In a blog post, the company that offers buy-now/pay-later (BNPL), stated that it was not immune to recent trends in public markets. It stated that Klarna’s valuation was on par with its peers, despite being down 80-90% from peak valuations.

Michael Moritz, Sequoia partner, said that the shift in Klarna’s valuation was entirely due to investors voting in a different way than they did for the past few year.

“The irony of it is that Klarna’s business, its position on various markets, and its popularity among consumers and merchants are all stronger now than ever since Sequoia invested in 2010. Klarna’s stock and other top-rated companies will eventually get the attention they deserve, once investors have escaped from their bunkers.

The Wall Street Journal reported in June that Klarna Bank’s valuation was expected to plummet to $15 billion due to a fundraise of $500 million. It was previously valued at over $45 billion.

Felipe Rodriguez

Felipe Rodriguez

Felipe states he has super powers, some argue that case but he does come up with some very clear predictions. Felipe is based in the US and frequently travels to Brazil where he was born. He is a journalist of the future and has a portfolio of crypto projects he has worked with. Felipe always says "The future doesn't scare me as much as the past, crypto is here to stay but only time will tell where it will take us".
Felipe Rodriguez

Felipe Rodriguez

Felipe states he has super powers, some argue that case but he does come up with some very clear predictions. Felipe is based in the US and frequently travels to Brazil where he was born. He is a journalist of the future and has a portfolio of crypto projects he has worked with. Felipe always says "The future doesn't scare me as much as the past, crypto is here to stay but only time will tell where it will take us".

© 2022 The Daily Encrypt. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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